Danske Fragtmænd and dao enter into a strategic collaboration

8. october 2020

Denmark’s leading general cargo carrier, Danske Fragtmænd, and the parcel distributor dao have entered into a collaboration. The purpose is to strengthen the competitive edge of the companies in a highly competitive transport market.

On 1 September, after many months of preparation, Danske Fragtmænd and dao entered into an agreement for the companies to collaborate on carrying out a range of future transport jobs. Today, Danske Fragtmænd has a significant share of the cargo market in Denmark and is in daily contact with a considerable part of the Danish business community. However, to date, the transport group has only had a limited involvement in the BtC market and the growing e-commerce market.

– E-commerce is a growing business area and has been so for quite a while. But it is not a market which has previously attracted the attention of Danske Fragtmænd because our business is primarily based on handling shipments for businesses. However, we experience an increased demand for one-stop-shopping from our customers. They want a carrier who can handle all jobs, both parcels for private customers and shipments for businesses. For this reason, we have been looking for a collaborative partner for a while which would be able to help deliver our customers’ shipments to private recipients, says Jørn P Skov, Managing Director.

It is therefore no coincidence that the collaboration will be between Danske Fragtmænd and dao. Because dao is facing the challenge of shipments for businesses, says Morten Villberg, CEO.

– We have both existing and potential customers asking for shipments for shops and businesses. We cannot provide that service today as all our shipments are delivered at night and in the early hours of the morning when companies and shops are closed. With this collaboration we can expand many of our existing customer agreements for commercial shipments while also target an even wider BtB segment which, to a lesser extent, thinks of dao as a potential carrier for businesses. We are therefore very pleased with this agreement and the new business opportunities offered by it.

Danske Fragtmænd and dao are both Danish, privately-owned companies whose cultures are a very good match, according to Morten Villberg, CEO. This is one parameter which he believes is decisive for a successful collaboration.

– Our staff will be working closely together across our respective organisations and it is therefore very important that we understand each other and enjoy a good, ongoing dialogue. We are in the middle of a change and development of our business which requires agility and entrepreneurship and the air is thick with it at our brand-new headquarters in Vejle. We have a strong focus on always putting the end user first and experience that our values and customer focus are a good match to those of Danske Fragtmænd.

Danske Fragtmænd and dao have already tested the collaboration on a couple of Danske Fragtmænd customers in the Triangle Region which has been a very satisfactory experience for everyone involved. The companies are therefore now ready to offer this solution to other customers and expect great interest in the options generated by the collaboration.

Briefly about dao

dao is owned on a 50/50-basis by Syddanske Medier A/S and JP/Politikens Hus A/S and, today, it is the largest distribution company within morning distribution. Every day, dao delivers parcels, newspapers and magazines to more than 6,000 shops, stores and boutiques. Every night, 3,500 dao distributors drive 100,000 km. At the moment, dao experiences significant growth, especially within the distribution of parcels to consumers for Danish and foreign web shops.

Briefly about Danske Fragtmænd

With its 27 freight terminals, 3,000 members of staff and just over 1,800 lorries, Danske Fragtmænd A/S is Denmark’s largest national transport and distribution system. The company is owned by 42 local carriers and the distribution network covers all of Denmark. Danske Fragtmænd makes more than nine million deliveries every year.